4Q22 Financial Highlights
J A N U A R Y 1 3 , 2 0 2 3
2022 Financial Highlights
Revenue
ReportedExcluding notable items
(a)
$16.4bn $16.9bn
Pre-tax income
ReportedExcluding notable items
(a)
$3.3bn $4.9bn
Returns
ReportedExcluding notable items
ROE: | 6.5% | % | |
10.3 | (a) | ||
(b) | (a) | ||
ROTCE: | 13.4% | 21.0% |
EPS
ReportedExcluding notable items
(a)
$2.90 $4.59
Pre-tax margin
ReportedExcluding notable items
20%29% (a)Capital ratios
T1L: 5.8%
CET1: 11.2%
- Revenue up 3% YoY, up 6%(a) excluding the impact of notable items
- Fee revenue flat YoY
- Net interest revenue up 34% YoY
- Expense up 13% YoY, up 5%(a) excluding the impact of notable items, and up 8%(a) excluding the impact of notable items and currency translation
- Provision for credit losses was $39mm compared with a provision benefit of $231mm in 2021
- Returned $1.3bn to common shareholders
- Board of Directors authorized a new $5bn common equity share repurchase program, effective January 1, 2023
- Represents a non-GAAP measure. See pages 16, 17 and 18 in the Appendix for the corresponding reconciliations of the non-GAAP measures of revenue, revenue growth, expense growth, pre-tax income, earnings per share, pre-tax margin, ROE
2 and ROTCE excluding notable items and expense growth excluding notable items and currency translation. - Represents a non-GAAP measure. See page 15 in the Appendix for the corresponding reconciliation of the non-GAAP measure of ROTCE.
4Q22 Financial Results | = excluding the impact of notable items | |||||||||||
4Q22 | 3Q22 | 4Q21 | 4Q22 vs. | |||||||||
$mm, except per share data or unless otherwise noted | 3Q22 | 4Q21 | ||||||||||
Fee revenue | $3,222 | $3,236 | $3,231 | -% | -% | |||||||
Investment and other revenue | (360) | 117 | 107 | N/M | N/M | |||||||
Net interest revenue | 1,056 | 926 | 677 | 14% | 56% | |||||||
Total revenue | $3,918 | $4,279 | $4,015 | Up 3%(c) | (8)% | Up 9%(c) | (2)% | |||||
Provision for credit losses | 20 | (30) | (17) | N/M | N/M | |||||||
Noninterest expense | 3,213 | 3,679 | 2,967 | Up 1%(c) | (13)% | Up 2%(c) | 8% | |||||
Income before income taxes | ||||||||||||
$685 | $630 | $1,065 | 9% | (36)% | ||||||||
Net income applicable to common shareholders | $509 | $319 | $822 | 60% | (38)% | |||||||
EPS | $0.62 | $0.39 | $1.01 | Up 7%(c) | 59% | Up 25%(c) | (39)% |
Avg. common shares and equivalents outstanding (mm) - diluted
Operating leverage(a) | |
Pre-tax margin | 31%(c) |
ROE | 11.9%(c) |
ROTCE(b) | 23.6%(c) |
816 | 815 | 817 | -% | -% |
+203 bps(c) | 423 bps | +665 bps(c) N/M | ||
17% | 15% | 27% | ||
5.7% | 3.5% | 8.6% | ||
11.5% | 7.5% | 17.2% |
Notable items impacting the quarter
Increase / (decrease) | Revenue | Expense | EPS | |
4Q22 | (460) | 213 | $(0.67) | 4Q22: Impact of net loss from repositioning the securities portfolio, a disposal loss, severance expense and litigation reserves |
3Q22 | 37 | 714 | $(0.81) | 3Q22: Impact of goodwill impairment, a disposal gain, severance expense and litigation reserves |
4Q21 | - | 37 | $(0.04) | 4Q21: Impact of severance expense and litigation reserves |
- Note: See page 13 in the Appendix for corresponding footnotes.
- Represents a non-GAAP measure. See page 15 in the Appendix for the corresponding reconciliation of the non-GAAP measure of ROTCE.
- (c) Represents a non-GAAP measure. See pages 16, 17 and 18 in the Appendix for the corresponding reconciliations of the non-GAAP measures of revenue growth, expense growth, earnings per share growth, operating leverage, pre-tax margin, ROE and ROTCE excluding notable items.
N/M - not meaningful.
2022 Financial Results
2022 | 2021 | 2022 vs. | ||||
$mm, except per share data or unless otherwise noted | 2021 | |||||
Fee revenue | $12,955 | $12,977 | -% | |||
Investment and other revenue | (82) | 336 | N/M | |||
Net interest revenue | 3,504 | 2,618 | 34% | |||
Total revenue | $16,377 | $15,931 | 3% | |||
Provision for credit losses | 39 | (231) | N/M | |||
Noninterest expense | 13,010 | 11,514 | 13% | |||
Income before income taxes | ||||||
$3,328 | $4,648 | (28)% | ||||
Net income applicable to common shareholders | $2,362 | $3,552 | (34)% |
= excluding the impact of notable items
Up 6%(c)
Up 5%(c), or up 8%(c) excluding
currency translation
EPS | $2.90 | $4.14 | (30)% | Up 8%(c) | |
Avg. common shares and equivalents outstanding (mm) - diluted | 815 | 856 | (5)% | ||
Operating leverage(a) | N/M | +86 bps(c) | |||
Pre-tax margin | 29%(c) | 20% | 29% | ||
ROE | 10.3%(c) | 6.5% | 8.9% | ||
ROTCE(b) | 21.0%(c) | 13.4% | 17.1% | ||
Notable items impacting the year
Increase / (decrease) | Revenue | Expense | EPS |
2022 | (511) | 1,029 | $(1.69) |
2021 | 13 | 129 | $(0.10) |
2022: Impact of goodwill impairment, net loss from repositioning the securities portfolio, severance expense, litigation reserves, accelerated amortization of deferred costs for depositary receipts services related to Russia and net gains on disposals
2021: Impact of litigation reserves, severance expense and gains on disposals
- Note: See page 13 in the Appendix for corresponding footnotes.
- Represents a non-GAAP measure. See page 15 in the Appendix for the corresponding reconciliation of the non-GAAP measure of ROTCE.
- (c) Represents a non-GAAP measure. See pages 16, 17 and 18 in the Appendix for the corresponding reconciliations of the non-GAAP measures of revenue growth, expense growth, earnings per share growth, operating leverage, pre-tax margin, ROE and ROTCE excluding notable items and expense growth excluding notable items and currency translation.
N/M - not meaningful.
Capital and Liquidity
4Q22 | 3Q22 | 4Q21 | |
Consolidated regulatory capital ratios:(a) | |||
Tier 1 leverage ratio | 5.8% | 5.4% | 5.5% |
Supplementary leverage ratio ("SLR") | 6.8 | 6.3 | 6.6 |
Common Equity Tier 1 ratio - Advanced Approaches | 11.2 | 10.1 | 11.4 |
Common Equity Tier 1 ratio - Standardized Approach | 11.4 | 10.0 | 11.2 |
Consolidated regulatory liquidity ratios: | |||
Liquidity coverage ratio ("LCR") | 118% | 116% | 109% |
Cash dividends per common share | $0.37 | $0.37 | $0.34 |
Common stock dividends ($mm) | $305 | $303 | $280 |
Common stock repurchases ($mm) | 2 | 2 | 1,249 |
Book value per common share | $44.40 | $43.18 | $47.50 |
Tangible book value per common share(b) | 23.11 | 21.55 | 24.31 |
Common shares outstanding (mm) | 808 | 808 | 804 |
5
Note: See page 13 in the Appendix for corresponding footnotes.
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The Bank of New York Mellon Corporation published this content on 13 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 January 2023 12:09:06 UTC.